Yes, It Sold: New Construction 5-Bedroom Single Family Home: 1542 W. Nelson in Lakeview
We last chattered about this 5-bedroom new construction single family home at 1542 W. Nelson in West Lakeview in August 2011.
See our prior chatter here.
At that time, the house had been reduced from $2.5 million to $1.999 million.
Many of you liked the house except for the fact that it was on an alley- that was also backed up to by restaurants with their dumpsters.
Some of you guessed it would sell at $1.8 million except for JJJ who guessed the correct sales price of $1.65 million.
Built on an oversized 35.8×124 lot, it had 4 bedrooms on the second floor, 1 bedroom on the third floor and 1 bedroom in the lower level.
All bedrooms had ensuite baths.
It had 4 terraces and a 3 car garage.
The kitchen had white cabinets and granite counter tops with stainless steel appliances.
The house had details expected at the luxury level including crown molding, built-ins and wainscotting. There was also a lower level family room and media room.
Why do developers continue to build $1 million+ single family homes in Lakeview and North Center?
Because they aren’t having any trouble selling them.
Dusanka Verschuur at Coldwell Banker had the listing. You can still see the interior pictures here.
1542 W. Nelson: 6 bedrooms, 5 full baths, 2 half baths, no square footage listed, 3 car garage
- Old frame house being sold for the land value originally listed in September 2008 for $745,000
- Reduced numerous times
- Sold in January 2010 for $480,000
- New construction home listed in May 2011 for $2.25 million
- Reduced
- Was listed in August 2011 at $1.999 million
- Sold in November 2011 at $1.65 million
- Taxes are “new”
- Central Air
- Bedroom #1: 18×18 (second floor)
- Bedroom #2: 17×13 (second floor)
- Bedroom #3: 14×13 (second floor)
- Bedroom #4: 12×12 (second floor)
- Bedroom #5: 21×15 (third floor)
- Bedroom #6: 18×15 (lower level)
- Media room: 15×12 (lower level)
- Recreation room: 28×18 (lower level)
So now what do we think 1514 Nelson will close for? $1.05MM?
http://www.redfin.com/IL/Chicago/1514-W-Nelson-St-60657/home/13366438
Great place but so bad of a location on that alley like that.
I hope the new owners enjoy the smell of Diesel, Pizza, Garbage and Urine because they will get all of it.
Not to mention loud garbage trucks picking up a few times per week
“Because they aren’t having any trouble selling them.”
Since when does taking $600,000 less than asking price qualify as not having any trouble selling a home? (I saw at least one listing where the price was $2.25M)
“So now what do we think 1514 Nelson will close for? $1.05MM?”
Well, it may have already been under contract at an inflated price, so I think around $1.1 million is possible. My impression of 1514 W. Nelson is that the quality and worksmanship were nowhere near 1542 W. Nelson (not to mention it is much smaller). However, this square quarter-mile or so has been pretty hot lately, and I think that it’s possible that someone went under contract for $1.14 million or so for 1514 W. Nelson. I think that is far too much, but to each his own. I doubt that it would have gone under contract this quickly for under $1.05 million or so, and I think it’s work maybe $1 million at most.
3044 N. Greenview just went on MLS as well. I think that’s quite overpriced at $1.245 million, especially given the closing price of 1542 W. Nelson, but we’ll see.
JJJ – stfu – just bc u got one price right doesn’t make you a certified expert on prices!!
I agree with Jon – I think that it’s highly likely that the builder took a loss or barely broke even on this one, given the land purchase price, likely construction costs and interest/opportunity cost.
It must be nice to be part of the 1% that can afford to pay $1M plus to live on an alley.
Lunker and HD – agreed. If you have $1 million or more to spend on a home, it seems like you could find a much better location.
This location was nicer IMO before the 1% showed up. I miss the Chicago where low-income, middle-income and upper-income people peacefully coexisted on the same blocks. The current new money breed seems to have a lemming group mentality when it comes to housing.
This weekend was the SOFA show at Navy Pier, where the art gets sold for fat amounts of cash. I was curious how the economy is affecting such high ticket items. There were plenty of “sold” stickers.
I think commute times, gridlock, and gasoline prices are getting high enough that people are choosing to live in the city.
If I’m popping 1.65 for a house, I for sure am not worried about gas prices.
oddly, I find all that built-in cabinetry surrounding all those fireplaces to be a bit annoying, all painted white, especially. It’s like a carpenter’s dream, I suppose, but why go to all that work and then paint it all? Not my taste, but hell, I also don’t have that kinda money anyway, so…
It’s in a good school district so that may have been a deciding factor.
“This location was nicer IMO before the 1% showed up. I miss the Chicago where low-income, middle-income and upper-income people peacefully coexisted on the same blocks. The current new money breed seems to have a lemming group mentality when it comes to housing.”
You have all sorts of dumpy two flat rentals with frat types or spinsters with cats. Those qualify as middle income.
You have McMansions, that would qualify as upper imcome.
As fpr low income, that implies minorities and Chicagoans of different races have never peacefully coexisted amongst one another. Chicago is among the most segregated cities in the U.S.
Those two flats are largely still standing only due to the housing slowdown and recession, at the rate they were being torn down prior, they otherwise would have been gone by now.
That’s the key point I was making, which was “peacefully coexisting.” Of course upper income people aren’t generally out there mugging people, but what they do is actually worse in terms of economic segregation, be it intentional or as an unintended side-effect.
There’s a reason why in Lincoln Park and Old Town you don’t see a lot of the middle and lower income folks any more. It isn’t that those folks don’t enjoy proximity to the Lakefront and the Loop.
“You have all sorts of dumpy two flat rentals with frat types or spinsters with cats. Those qualify as middle income.
You have McMansions, that would qualify as upper imcome.
As fpr low income, that implies minorities and Chicagoans of different races have never peacefully coexisted amongst one another. Chicago is among the most segregated cities in the U.S.”
“So now what do we think 1514 Nelson will close for? $1.05MM?”
Given that 3038 Greenview sold +200k from 2003 for $1,020,000 just a month or so ago, and is about 15 years older, I would think at least 100k more.
There are tons of ways to lighten the cost of new build and there are lots of factors that can increase the value of an older build.
For example, on HVAC alone, the difference between a builder-grade low efficiency two zone furnace that is undersized versus a high end, high efficiency triple zone with steam humidifier, fresh air intake, UV cleansing, communicating thermostats is around 30k.
HVAC is just one example. The difference between builder grade and premium finishes is always substantial. Just looking at a 25 x 125 shell and assuming it should trade for x or y is a gross oversimplification.
“Those two flats are largely still standing only due to the housing slowdown and recession, at the rate they were being torn down prior, they otherwise would have been gone by now.”
Disagree. We own several of them and they are superior in terms of investor return without exception, and were both during and prior to the housing bubble bursting for that matter.
“Disagree. We own several of them and they are superior in terms of investor return without exception, and were both during and prior to the housing bubble bursting for that matter.”
JMM: I don’t understand that. 2-3 flats in the GZ haven’t sold on a cash flow or cap rate basis since 1995. How did you get superior returns from owning & operating this asset class? Tks..
“high efficiency, fresh air intake”
I’m no expert on Thermodynamics, but with Chicago’s frigid winters, how could you have fresh air intake and high efficiency at the same time?
JMM on November 8th, 2011 at 3:40 pm
“Those two flats are largely still standing only due to the housing slowdown and recession, at the rate they were being torn down prior, they otherwise would have been gone by now.”
Disagree. We own several of them and they are superior in terms of investor return without exception, and were both during and prior to the housing bubble bursting for that matter.
Agreed. I’ve got Multi Units as well and there are people out there that rent and cannot afford to live in a $1M Single Family
“I’m no expert on Thermodynamics, but with Chicago’s frigid winters, how could you have fresh air intake and high efficiency at the same time?”
It runs through the cold air supply on the furnace so it gets raised to hot air temperature during a heat call. Similar to bleed air systems on a plane, but in reverse.
Fresh air intake systems are most often used on houses built so tight they require them to ensure adequate ventilation.
“I don’t understand that. 2-3 flats in the GZ haven’t sold on a cash flow or cap rate basis since 1995.”
Cap rate basis doesn’t make sense. Whatever they sell for determines the cap rate, not the other way around.
As far as cash flowing, you need to do the math and figure that one out for yourself. But, let’s put it this way, no one is buying 2/3 flats to tear them down. Lots are readily available by way of decrepit old SFHs, failed projects, etc.
“It runs through the cold air supply on the furnace so it gets raised to hot air temperature during a heat call.”
Right, that’s what I figured. But it must take alot of energy to turn 30 degree cold air to 72 degrees. So, it can’t be low cost or efficient (whatever that means).
“As far as cash flowing, you need to do the math and figure that one out for yourself. ”
I’ve followed these and from 1995 onwards they were priced so high that the rent minus opex (aka “NOI”) didn’t provide a high cash-on-cash return, so I still don’t understand how: “they are superior in terms of investor return without exception”. What is considered a good rate of return?
“So now what do we think 1514 Nelson will close for? $1.05MM?”
It closed at $1.14 million. I think that it about $100k too high, but I’m not surprised given the recent activity in this area.